Bitcoin has maintained an upward moving trend, recently hitting an all-time high of $68,162. The value has since dropped to around $63,000, but market indication shows that the crypto-asset could sustain the price level for a longer time.
In other Bitcoin bullish rallies, the positive market sentiment does not seem to sustain for a long time, but this time it looks different.
Bitcoin Maintains Market Dominance
Bitcoin’s market cap has stayed above $1.2 million for the past few weeks. In addition, the token’s crypto market dominance has continued to grow, as it moved from 42% to 43% within the past two days. The world’s most valuable cryptocurrency has surged more than Binance Coin (BNB), Solana (SOL), and Ethereum (ETH) within the past 24 hours.
The present Bitcoin’s positive momentum was helped by the launch of Taproot, the biggest upgrade to the Bitcoin protocol since 2017. It turned out that the market was in a positive mood following the launch, and it could remain that way for a long time.
Taproot is providing a wide range of benefits that can have a positive impact on the efficiency of the Lightning Network and security. The network was initially proposed by developer Greg Maxwell in 2014.
Bitcoin Has More Than Doubled Its Value This Year
When it comes to Bitcoin’s on-chain activities, it recorded a notable increase in supply movements. Glassnode’s recently published data noted that about 18.3% of the total Bitcoin supply has moved above its $1 trillion market cap level.
The current positive rally of Bitcoin is one of the longest sustainment levels the crypto asset has had in its history. Bitcoin began the year at $29,000 a token. This means that the value of the digital asset has more than doubled this year. The activities of retail traders and institutional investors have enabled the crypto asset to hit an all-time high.
Bitcoin’s Exchange Balance Depletes
In a Twitter post, Glassnode Glassnode stated that Bitcoin’s exchange balances have continued to be depleted as the crypto asset hits all-time highs. The crypto data tracking platform noted that the exchange reserves it tracks account for only 12.9% of the circulating supply. It also stated that even at the all-time-high prices, there are increasing levels of outflows.